COMMONWEALTH OF AUSTRALIA PARLIAMENTARY DEBATES SENATE Official Committee Hansard RURAL AND REGIONAL AFFAIRS AND TRANSPORT LEGISLATION COMMITTEE (Consideration of Estimates) THURSDAY, 19 SEPTEMBER 1996 BY AUTHORITY OF THE SENATE CANBERRA 1996 Thursday, 19 September 1996 SENATE—Legislation RRA&T 99 SENATE Thursday, 19 September 1996 RURAL AND REGIONAL AFFAIRS AND TRANSPORT LEGISLATION COMMITTEE Portfolios: Primary Industries and Energy; Transport and Regional Development Members: Senator Crane (Chair), Senator Conroy (Deputy Chair), Senators Calvert, Bob Collins, McGauran and Woodley Substitute members: Senator West to substitute for Senator Bob Collins on 13 September 1996. Senator Panizza to substitute for Senator Calvert for the period 16 to 20 September 1996 Participating members: Senators Abetz, Boswell, Brown, Brownhill, Chapman, Cook, Eggleston, Ferris, Forshaw, Gibbs, Harradine, Kemp, Ian Macdonald, Sandy Macdonald, Mackay, Margetts, Murray, Schacht, Tambling, Tierney and West The committee met at 1.12 p.m. DEPARTMENT OF TRANSPORT AND REGIONAL DEVELOPMENT Proposed expenditure, $258,248,000 (Document A). Proposed provision, $209,626,000 (Document B). Consideration resumed from 17 September. In attendance Senator Parer, Minister for Resources and Energy Department of Transport and Regional Development— Executive Mr John Bowdler, Deputy Secretary Program 1—Aviation Subprogram 1.1—Aviation Policy Mr Peter Harris, First Assistant Secretary Mr Tony Wheelens, Assistant Secretary, International Relations Mr J. White, Assistant Secretary, Airport Regulation Mr Jim Wolfe, Acting Assistant Secretary, Aviation Industry Subprogram 1.2—Aviation Operations Mr Paul Merner, First Assistant Secretary Mr Ray Turner, Assistant Secretary, Aviation Security Branch Dr Hugh Milloy, Assistant Secretary, Sydney West Airport Taskforce Mr Ray Warren, Acting Assistant Secretary, Aviation Environment Branch RURAL AND REGIONAL AFFAIRS AND TRANSPORT RRA&T 100 SENATE—Legislation Thursday, 19 September 1996 Subprogram 1.3—Bureau of Air Safety Investigation Dr Rob Lee, Director Mr Ian McCallum, Deputy Director, Investigations Subprogram 1.4—International Air Services Commission Mr Danny Scorpecci, Executive Director Subprogram 1.5—Civil Aviation Safety Authority Mr Leroy A. Keith, Director of Aviation Safety Mr John Pike, Deputy Director Ms Sue-Ellen Bickford, General Manager, Finance Ms Marcia Kimball, General Manager, Human Resources Management Mr Rob Elder, General Manager, Corporate Relations Subprogram 1.6—Federal Airports Corporation Mr Peter Snelling, General Manager, Network Airports Subprogram 1.7—Airservices Australia Mr Bill Pollard, Chief Executive Officer Mr Peter Evans, General Manager, Air Traffic Services Mr Tom Grant, General Manager, Corporate and Employee Relations Mr Brian Kendal, Manager, Operational Policy Mr Colin Dahl, Manager, Environment Mr Graham Beer, Manager, Financial Strategy Mr Ian Rischbieth, Manager, Government Relations Program 2—Land Transport Subprogram 2.1—Road and Rail Policy Mr Bruce Gemmell, First Assistant Secretary Mr Andy Hrast, Acting Assistant Secretary, Roads Mr Warwick McNamara, Director, Roads Program Mr Daryl Quinlivan, Assistant Secretary, Rail Mr Stan Marks, Acting Director, Rail Enterprise Mr Richard Desmond, Director, Rail Policy Subprogram 2.2—Federal Office of Road Safety Mr Peter Makeham, First Assistant Secretary Mr Tony Ockwell, Assistant Secretary, Road User Subprogram 2.3—Australian National Mr Andrew Neal, Acting Managing Director Mr Alistair Powell, Chief Finance Officer Program 3—Maritime Subprogram 3.1—Maritime Mr Kym Bills, First Assistant Secretary RURAL AND REGIONAL AFFAIRS AND TRANSPORT Thursday, 19 September 1996 SENATE—Legislation RRA&T 101 Dr Greg Feeney, Assistant Secretary, National Shipping and Infrastructure Captain Kit Filor, Chief Investigator, Marine Incidents Mr David Holmes, Director, Marine Personnel and Administration Subprogram 3.2—Australian Maritime Safety Authority Mr Paul McGrath, Executive Officer Mr Brian Munro, General Manager, Corporate and Commercial Services Program 4—Regional Development Subprogram 4.1—Regional Development Mr Stephen Hunter, formerly First Assistant Secretary, Regional Development Ms Robyn Beetham, Assistant Secretary, Regional Development Ms Rosemary Cousin, Assistant Secretary, Regional Development Mr Steve Garlick, Assistant Secretary, Regional Development Mr John Okely, Assistant Secretary, Regional Development Ms Pieta-Rae Laut, formerly Director, Regional Development Mr Simon Murnane, Director, Regional Development Program 5—Corporate Direction and Support Subprogram 5.2—Management Support and Advice Mr Bill Ellis, First Assistant Secretary Mr John Elliott, Assistant Secretary, Finance and Services Subprogram 5.3—Research Mr Stephen Hunter, Director Ms Sue Elderton, Research Manager Dr Leo Dobes, Research Manager Mr David Luck, Research Manager Mr Len Hegedus, Manager, Corporate Services Department of Finance— Ms Anne Burhop Mr Stephen Hoult Ms Dianne Rimington CHAIR—I declare open this public hearing of the Senate Rural and Regional Affairs and Transport Legislation Committee. On 22 August 1996, the Senate referred to the committee the particulars of proposed expenditure in respect of the year ending 30 June 1997, and particulars of certain proposed expenditure in respect of the year ending 30 June 1997 of the following portfolio areas: Primary Industries and Energy, and Transport and Regional Development. On Tuesday the committee considered the proposed expenditure for the Department of Transport and Regional Development. Today the committee will conclude hearings on remaining programs from that portfolio. The committee will then examine estimates for the Department of Primary Industries and Energy and, if necessary, will conclude that portfolio RURAL AND REGIONAL AFFAIRS AND TRANSPORT RRA&T 102 SENATE—Legislation Thursday, 19 September 1996 during hearings commencing at 9.00 a.m. tomorrow. The committee is required to report to the Senate on or before 10 October 1996. Committee members and participating members have been provided with Portfolio Budget Statements for each of the portfolio areas to be considered, and I proposed to call on the estimates by program and subprogram as they appear in these statements. I draw the committee’s attention to the tight timetable for these estimates and foreshadow to departments and agencies that it is likely that the committee will nominate Monday, 14 October 1996 as the date for submission of written answers and additional information. I should also indicate that the committee has authorised the recording and rebroadcasting of its proceedings in accordance with rules contained in the order of the Senate of 23 August 1990. I welcome Minister Warwick Parer, who has replaced the Hon. Richard Alston. As there is a leaders meeting on now—this is particularly important for the departmental people—it has been agreed that Senators Harradine, Margetts, Brown, Kemp and Panizza, who are either full or participating members, will be able to go back to a program if they wish to do so. Senator Parer, do you wish to make any comment or statement? Senator Parer—No, Mr Chairman. [1.15 p.m.] Program 2—Land transport Subprogram 2.1—Road and rail policy development Senator CONROY—Can you provide the committee with a breakdown, on a state and territory basis, of funding for the national highway over the next four years? Mr Gemmell—We could only partially provide information on that in the sense that information is available for those projects that are approved, announced and under way. The minister has to make some decisions about new projects to commence in 1996-97 and in later years. Senator CONROY—Can you break the current ones down into asset preservation and any other identifiable categories, such as roads of national importance? Mr Gemmell—We can do that. Senator CONROY—Take that on notice? Mr Gemmell—Yes, please. Senator CONROY—Can you identify individual projects and advise what electorates they are in? Mr Gemmell—We certainly can advise what electorates they are in, yes. Senator CONROY—What is the benefit-cost ratio for each project? Mr Gemmell—We can provide that for all projects that are currently approved and on the program. Senator CONROY—I understand that $622 million has been cut from the national highway over the next four years. Is that correct? Mr Hrast—That figure is correct, yes. Senator BOB COLLINS—I must say, Minister, having had my head beaten in for three or four years by a fleet of National Party and Liberal Party members of parliament all over RURAL AND REGIONAL AFFAIRS AND TRANSPORT Thursday, 19 September 1996 SENATE—Legislation RRA&T 103 Australia for our sins and iniquities in terms of road funding, I am astonished at that figure. I don’t think there is a question in there anywhere, Minister. Senator CONROY—Can you provide a breakdown of the cuts to funding of the national highway system on the same basis as I just asked for the committed projects? Mr Gemmell—No. We can provide information on what funds are available, but it is not possible to tell you what projects may have been approved that will not now be approved. Senator CONROY—What was the basis of the cuts to road funding? Was it simply to meet the bottom line or was it based on an analysis of the state of the national highway system? Senator BOB COLLINS—It was a hypocritical government that was talking— CHAIR—It is not up to you to answer questions, Senator Collins. We have some very capable officers at the table. Mr Gemmell—All